83 Money Moves To Make Before You Are 30 Years Old

by Hank Coleman

Lets face it…there are some things that you need to do now if you want to be rich in the Golden Years of your life. If you want to retire and eat something other than Ramen noodles and live solely off of your Social Security benefits, you need to start planning for your retirement now. There are things that you need to do with your money, personal finances, and investing in order to set yourself up for success later in life. It is a shame that you have to think about these things right after graduating from college and/or entering the workforce, but you do. The sooner you start making these essential money moves in the early portion of your life, then you will be positioned for success later when you actually have and need money for retirement.

I’m a little past the target range of this post, but there are lessons here for every age group.
The one thing, though, the sooner you master these personal finance tactics, the sooner you become your own master.
And one more thing, you young whippersnappers, I used to walk uphill–both ways–in the snow to get to the bank. (Sorry, I had to add that.)

I guess I sort of understand your premise behind #1, but I don’t think It’s entirely fair. I’m 22 and getting ready to graduate from college (and get married). I have 2 credit cards. One I got when I graduated from high school and have one subscription payment a month only to keep the credit for purposes of my credit score (longest card, increased available credit). Then I have a cash back rewards card that I use daily. Both cards are paid off in full every month. I don’t have to worry about carrying cash, I help my credit score, and I even get a (meager) amount of cash back. What’s the downside?

I know plenty of people my age don’t use cards this way, but I know there are also a reasonable number who do. Wouldn’t a better rule be “Don’t carry a balance on credit cards.” I know you mention it elsewhere, but a hard and fast rule against using credit cards seems over the top.

54. Unless you have dependents, you don’t need life insurance. Period.

Learn how to DIY for car and home repairs and your savings can be huge.
I estimate that each $100 I would spend on a handyman, mechanic or contractor costs $150 in pre-tax earnings (accounting for Fed income tax rate + payroll tax + state tax.) If you can DIY, your costs are only for materials plus any sales tax.

@Mohan Arun L: I think the “use credit cards wisely” mentality is what leads people into trouble. If people instead used the mentality of “an emergency fund is essential” then perhaps people could realize they don’t “need” credit cards.

Credit cards enter the picture when the money runs out. Eventually the credit cards run out too. I think most people would be better off if they just acted like they were at the “out of credit” stage when they run out of money in the first place.

If one is simply using credit cards to take advantage of discounts, rewards, or to build their credit, I see no problem with it. There are other ways to do the latter and the former is only worth it if that person is disciplined- creditors count on the opposite.

If you ever want to get a loan for anything (car, house), it’s actually important to build a credit history. Telling people not to use credit cards is silly. If you have a budget and stick to it, and pay your balance every month, using credit cards to pay for those purchases is a good idea. First and most importantly, it builds a history of good credit. (The credit score is a complicated thing and one shouldn’t simply go out and apply for a ton of cards – but using 1 or 2 cards consistently and paying on time is the best way to build credit. See myfico.com for more information.) Second, there are definitely perks – cash back, miles, etc. – I get between 1% and 5% cash back on every purchase I make with credit cards. Third, it’s convenient, especially for buying online. Fourth, it’s safer than carrying cash – credit card companies can predict you against fraud etc. And if you just use debit cards and someone steals your debit card, you’re much worse off since it’s going to take a while to get that all worked out with the bank (and meanwhile you have no money!). Fifth, there are other advantages like longer warranties on purchases, etc. Sixth, many credit card companies (like Discover) have tools to help you analyze your spending. Seventh, having a record of purchases is really helpful for everything from taxes to budgeting to returns; you can kind of get that if you use checks but bank interfaces are much poorer. The issue is not credit cards per se – it’s people not sticking to a budget.

Yes, as a licensed financial person I have to disagree on the “no credit card and no revolving debt”
If you have no debt or balance on your cards. You show the credit card rating services that you “can not handle debt” (I have been told this by numerous institutions from banks, credit unions , Experion * Trans-America to lending agents)
I had a client with perfect credit, paid in cash, never had a balance owed, had over $3Million in a portfolio and when she tried to get a home improvement loan. Was denied!
When she tried to get the level of her $15,000 in credit line raised. Denied.
Eventually she was given an extra $5,000 and was told that once she had a history with the $20,000. She would get more.
In other words.
They wanted to make sure she could “handle it!”
Credit, like all business/financial creations. Needs to be managed. Not abused and not taken for granted.
Try and be a small contractor without credit line or a small one and you will find out its next to impossible.
Still some good tips, BUT like most advice… seek an expert, infact, a few.
Before you follow your whole life and wonder what “went wrong”

I’m at about 31 right now. At 22, that’s not bad. For the ones I qualify for (not the mortgage or the car ones) I think I’m doing pretty well. I won’t stop using credit cards. Save something from every paycheck.

You missed a few items which i think are key
1. Invest early (If you havent started, it time to start now)
2. Invest in Stocks – Long term
3. Invest in Metals
4. Dont Save money (Yes saving erodes money due to inflation, always invest money and not save)

I’m a little past the target range of this post, but there are lessons here for every age group.
The one thing, though, the sooner you master these personal finance tactics, the sooner you become your own master.

Or By E-mail

Disclaimer

Any information shared on Own The Dollar is provided for informational and entertainment purposes only and does not constitute specific financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You should discuss your specific requirements and situation with a qualified financial adviser.